Hi,
I would request a suggestion based on the below facts:
There are two share holders of the company namely A & B. The company issued 200 shares & 100 shares to A & B respectively @ of Rs.10 each.
Now the shareholder of B transfers the shares of him to A @ 100 each.
will there be any other accounting entry in the books of company other than the following:
Share Capital-B a/c Dr xxxx
to Share Capital -A Cr xxxx
And also what will be the accounting treatment in the books of A.
If A is the holding company of the said company, what will be the accounting treatment while consolidation.?